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Manuka Resources (ASX:MKR) is ramping up activities at the Wonawinta silver and Mt Boppy gold mines on the back of a robust 10-year mine plan, which outlines an opportunity to produce 13.2 million ounces silver and 35 thousand ounces gold from existing stockpiles and open pits at the two Cobar Basin mines.
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An updated Cobar Basin prefeasibility (PFS) study has also identified the potential for a significant profit increase. The early CY26 study estimated a net present value of $805 million and an internal rate of return (IRR) of 1,092% based on US$95/oz silver and US$4,800/oz gold prices.
With all that now in the chamber, executive chairman Dennis Karp said Manuka is on target for near term production, leveraging the company’s existing plant, based in New South Wales, with low capex upgrades.
“Manuka is uniquely positioned among junior ASX resource companies as one that is well set to translate historically high silver and gold prices into substantial near-term cash returns for the company,” Mr Karp declared.
He continued: “With our existing one million tonnes per annum processing plant set to restart within the coming months, debt funding to support the modest capital costs nearing finalisation and an initial ten-year production plan demonstrating outstanding economics, Manuka Resources now presents both as a compelling and significantly undervalued investment opportunity.”
Manuka is well placed to meet the pre-production capital cost estimate of $26.6M, too, after raising $15M last October. It’s also finalising a binding agreement for a ~$32M debt facility with Nebari Natural Resources Credit Fund.
Elsewhere, on the exploration front, Manuka is chasing resource growth with ongoing exploration drilling at Mt Boppy. That field work is targeting high-grade extensions to gold mineralisation that has historically delivered approximately 500,000 ounces, grading at around 15 grams per tonne gold.
MKR has been trading at 20.5cps today.
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